GS Bacares Iberia has acquired the Nômade Madrid hotel from Hotei Properties for €105 million, according to the socimi’s filing with BME Growth. The transaction could generate a further €10 million through an earn-out linked to the hotel’s operating performance over the three years following the deal.
Located at 11 Gran Vía in Madrid, the five-star hotel has 93 rooms. Formerly Iberostar Las Letras, the property opened under the Nômade brand on 27 May, after Hotei completed its conversion into a five-star hotel in March.
GS Bacares Iberia is majority-owned by Nômade Partners, which belongs to the same group as the company that had leased the property from Hotei. The buyer will take over the lease with NMD Gran Vía, which operates the hotel, as well as the rooftop lease for telecommunications infrastructure.
The transaction covers the building, furniture and installations, excluding any business operation. The asset had an associated mortgage of approximately €41.6 million, which was fully repaid following completion of the sale.
Hotei expects the divestment to generate an €8 million capital gain in its individual accounts, compared with the €7.5 million estimated when it accepted the binding offer in June.
The sale will allow the socimi to return €1.191 per share from share premium and distribute an interim dividend of €0.0612 gross per share. Both payments are scheduled for 15 September.
The transaction also fulfils one of the conditions attached to the voluntary offer launched by Painwick Project to acquire Hotei shares. The socimi said the disposal forms part of its strategy to rotate non-core assets and focus its portfolio on the luxury and ultra-luxury segments.
